Compared to previous generations, older women today carry more debt and are facing retirement in a more financially precarious position.

Summary

Total debt among women in their 50’s and 60’s has more than doubled in recent decades, and the percentage of older women with less than $25,000 in savings has also increased sharply. These are among the findings of this report on what motivates older women to remain in the labor force. Analyzing data from several large-scale studies, the authors conduct an extensive evaluation of how older women manage their household debt and plan for retirement.

Key Insights

The probability of working longer has risen for older women over time.

Older women who are over-indebted and financially fragile tend to have lower financial literacy and more financially dependent children; they also are likely to have experienced large income declines.

Methodology

Using data from two sources, the Health and Retirement Study and the National Financial Capability Study, the researchers conducted a multivariate analysis with two outcome variables: whether a woman is currently employed and the probability a woman will be working at age 65. They then considered the extent to which financial fragility and indebtedness affect these outcomes.

Financial resources alone are not enough for a secure retirement. Women also need the capacity to manage their resources effectively.

About TIAA Institute

The TIAA Institute helps advance the ways individuals and institutions plan for financial security and organizational effectiveness. The Institute conducts in depth research, provides access to a network of thought leaders, and enables those it serves to anticipate trends, plan future strategies and maximize opportunities for success.